DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
Registered number: 10633799 Charity number: 1171869
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 9 |
| Trustees' responsibilities statement | 10 |
| Independent auditor's report on the financial statements | 11 - 14 |
| Statement of financial activities | 15 |
| Balance sheet | 16 |
| Statement of cash flows | 17 |
| Notes to the financial statements | 18 - 32 |
DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 JUNE 2023
| Trustees | Benjamin Mire |
|---|---|
| Isaac Levy | |
| Russell Kett | |
| Brian Markeson | |
| Company registered number 10633799 Charity registered number 1171869 Registered office 305 Ballards Lane London N12 8GB Company secretary Avrom Topperman Chief executive officer Avrom Topperman Independent auditor Blick Rothenberg Audit LLP Chartered Accountants Statutory Auditor 16 Great Queen Street Covent Garden London WC2B 5AH Bankers National Westminster Bank Plc City of London office PO Box 12258 1 Princes Street London EC2R 8BP Solicitors Stanmore Law Practice 51/53 The Broadway Middlesex HA7 4DJ Investment advisors Rathbone Investment Management Limited 8 Finsbury Circus London EC2M 7AZ |
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2023
The Trustees present their annual report together with the audited financial statements of the charity for the year 1 July 2022 to 30 June 2023. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (2nd Edition, effective January 2019) ("Charities SORP"), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Since the charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
The objective of the Board is to ensure that the provision of kosher meat and poultry for the Jewish community in and around London, and such other Jewish communities that may wish to associate themselves with the Board.
The Board shall achieve this by all such measures as may be deemed necessary, including administering and managing shechita (the Jewish religious, humane method of animal slaughter for food), through training and employing such staff as are required for shechita procedures, supervision of meat and poultry processing, sealing, monitoring and certification of these activities, in accordance with the Shulchan Aruch (the Code of Jewish Law) and Halacha (Jewish religious and procedural Law following the Code).
The Board's major expense includes staff costs, sealing materials and general office expenses.
Income to meet this expenditure is derived from shechita fees, shomer recharges and income generated from the charity's rental investment properties and listed investments.
A licensee whose conditions and licence require them to use the services of a full or part-time supervisor (shomer) provided by the Board, is recharged by the Board for the cost of such services.
Establishments wishing to manufacture and/or wholesale and/or retail products under the Board's certificated supervisions, must be licensed annually by the Board and submit themselves to the jurisdiction of the Board's Rabbinical Authority.
In protecting the provision of shechita and the supply of Kosher meat and poultry for its beneficiaries, the Board also budgets for training and educational services and provides a conduit for information passing between licensees, government agencies, ministries and the general public.
The Board is also a major supporting member of the National Council of Shechita Boards of Great Britain, which is the main national organisational responsible for the promotion of shechita as a humane method of animal slaughter for food consumption.
The charity has achieved the aim of enabling the Jewish community to have access to kosher meat and poultry that complies with their religious laws, by way of supervision, certification and administration. This is an essential tenet of Jewish communal life and allows the community to continue to function. This contributes towards Britain as a tolerant and enlightened society, by way of members of the Jewish community being able to practise their faith in an inclusive manner.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
Achievements and performance
a. Licensing
Prior to considering licence renewals for the Hebrew year 5783 (September 2022 to September 2023), members of the Licensing Committee (Chaired by Dr Lionel Finkelstein) reviewed all licensed premises by way of a report prepared by the Chief Executive, Rav Hamachshir and senior inspector providing recommendations regarding the renewal of the licence. All 3 regularly spend time at licensed premises and were able to provide comprehensive feedback to the licensing committee. The committee were able to offer renewal to all licensees.
As at the 30th June 2023, the Board licensed 25 premises (with the licences held by 10 individuals), which included:
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Three poultry abattoirs
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Two fully EU-approved factories (as well as the 'factory' capacity at some of the licensed shops); • Eighteen licensed shops in London and two licensed shops in Manchester
In considering whether to grant a licence there are a variety of considerations that are relevant beyond the suitability of the licensing and the premises. Some of those considerations relate to protecting the consumer, some relate to protecting the reputation and integrity of, and public trust in the Board, and some relate to the need to ensure sufficient competition in the relevant Kosher markets, whilst not compromising on quality available to consumers. Understandably, some of those considerations conflict.
In recent years, with the restructuring and consolidation among butchers, those considerations are potentially more in conflict now than ever before.
The Board has also become increasingly aware of its responsibilities under secular competition law which is why long ago it removed blanket restrictions when considering applications for new premises that were close to existing premises.
The Rabbinical Authority is asked for Halachic guidance on each application. Consideration is given to the Report of SLG Economics Ltd (commissioned to conduct a review of competition issues in the licensing, wholesaling and retailing of Kosher meat), when determining licence applications, following the submission of this confidential expert report through the Board’s solicitors in March 2013.
b. Shechita Operations
The Board remains concerned about the continued attacks upon shechita, by virtue of occasional outbursts in media activity critical of religious slaughter, which is bolstered by the ongoing policy of The British Veterinary Association that wish to see a ban on religious slaughter without pre-stunning, plus regular negative speeches made on the subject in parliament.
The threat of the introduction of pejorative labelling making reference to stunned and non-stunned slaughter, the ECJ decision relating to shechita in Belgium and the debate in parliament relating to ‘slaughter to order’, may have a detrimental impact on the continuing willingness of abattoirs which currently permit shechita operations as part of their business model to continue granting that facility. The Board continues to work with Shechita UK, assisting them in their defence of shechita.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
Achievements and performance (continued)
c. The Trade and Consumers
The Board maintains a close working relationship with the trade. Apart from contact with individual licensees, the trustees invite representatives of the trade to quarterly board meetings, with an open agenda.
The Consumer Affairs Committee (chaired by Seth Belson) continues to promote the Board’s brand and image and develop marketing initiatives and communications to counter widely held perceptions, often expressed in some Jewish media about the price of Kosher meat and poultry.
The Board continued to invite trade representatives to deliver a routine report on the current state of the market at each quarterly meeting.
d. Shechita Defence
The defence of shechita is led through the National Council of Shechita Boards, of which the London Board is a significant financial contributor. Financial contributions assist in funding the work of Shechita UK, a Public Affairs Consultancy engaged by the National Council and the Board of Deputies, which undertakes work necessary in the realm of shechita defence, both as regards media relations and the promotion and defence of shechita at government level. Regular updates on the work of Shechita UK are distributed to interested parties by the Board.
e. Rabbinical Authority
The Board thanks the members of the Rabbinical Authority; Dayan M Gelley of the United Synagogue and Dayan A David of the Spanish & Portuguese Community for sharing their considerable knowledge and time that they have freely given to its work.
f. Staffing
The Board currently employs 20 shechita and associated staff and 2 adminstrative and management staff. There were no additional recruits to the Board during the current accounting year.
The Chief Executive, Rav Hamachshir (Senior Rabbinic Supervisor) and Senior Inspector comprise the key management personnel of the charity and are in charge of directing and controlling, running and operating the charity on a day-to-day basis.
The Chief Executive continues to monitor the staffing levels against any movement in volumes slaughtered and the fluctuating needs of its licensees, including abattoirs and factories under its supervision. He liaises closely with the Rabbinical Authority on their staffing requirements, to ensure standards of Kashrut are maintained.
The Board thanks its staff for their work for the benefit of the community at locations, with working hours and conditions, that few members of the community would themselves be willing to work.
All trustees give of their time freely and none of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period. No trustees were reimbursed for expenses during the year.
In view of the nature of the charity, the trustees benchmark pay levels against other communal charities of a similar size. Particular regard is made when determining salary policy to the scarcity of available labour in an extremely specialised field.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
Achievements and performance (continued)
g. Properties and investments
Benjamin Mire, one of the Board’s Honorary Officers continues to support the Chief Executive and his assistant, in the management of the Board’s investment properties. Management agents, KMP, have proven to be proactive in their work and there has been continued progress in rent reviews, lease renewals, new lettings and the redevelopment of empty properties to make them more marketable and lettable. All properties are now let.
The Board saw the value of listed investments fluctuate as a result of the war in Ukraine. It is anticipated that the value of those investments will in due course recover.
Throughout the period there has been some expenditure on investment properties in accordance with advice from the charity’s managing agents. In addition, professional fees have been incurred with the charity’s property solicitors and managing agents.
Financial review
a. Review of current year performance
The board is a registered charity and non-profit making entity and it budgets for a modest surplus to enable it to operate with financial stability.
For the 12 month period ended 30th June 2023, the results show a deficit of income resources over resources expended of £90,495 (2022: £403,022). However, this includes net gains on investments of £15,620 (2022: loss of £31,316). Excluding this element, the charity’s results show a net deficit of £106,115 (2022: £291,706).
Total expenditure during the year was £2,709,402 (2022: £2,635,745) of which £2,582,266 (2022: £2,541,847) was spent on the provision and administration of shechita, and the balance on investment, management and governance costs. This included a grant of £36,000 (2022: £36,000), awarded to the National Council of Shechita Boards of Great Britain towards the protection and administration of shechita in the UK and EU.
The Trustees remain confident that the Board remains a going concern despite its expenditure exceeding its direct income having regard to:
a) its investments
b) its ongoing review of expenditure and the progress that has been made over the last 12 months in reducing the same on an ongoing basis
The Finance Committee (chaired by Laurence Golend) has continued its sophisticated role in advising and assisting the Honorary Treasurer, by regularly reviewing the Board's finances at its committee meetings.
b. Reserves policy
The Board has reviewed and maintained its financial policy over recent years, whereby the unrestricted funds not committed to or invested in tangible fixed assets, land and buildings or designated for other specific purposes (the 'free reserves') held by the charity, should be four months of the wage and salary costs. This equates to £710,049 in general funds. The free reserves at 30 June 2023 amount to £936,417 (2022: £1,026,912) and total reserves amount to £6,396,417 (2022: £6,486,912)
c. Investment policy
It is the policy of the trustees to invest surplus funds in suitable investments, in order to maximise returns to the charity. The charity holds an investments portfolio with Rathbones Investment Managers and has three income generating investment properties.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
d. Risk factors
The trustees continue to assess the risks to which the Board is exposed, in particular, those related to the operations and finances of the Board, and are satisfied that systems are in place to mitigate the Board's exposure to risks.
e. Risk management
The trustees have a risk management strategy, which comprises:
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An annual review of the principal risks and uncertainties that the charity face, by updating a detailed risk register;
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The established of policies, systems and procedures to mitigate those risks as identified in the annual review, by discussing these at regular meetings that are held at least every month; and
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The implementation of procedures designed to minimise and manage any potential impact on the charity, should those risks materialise.
This work has identified that there are a number of significant operational and financial risks that might impact the sustainability of the charity. Some of these risks are identified elsewhere in this report, for example licenseeretention; potential loss of an abattoir; and a change in legislative policy on the practice of shechita.
A key element in the management of financial risk is a regular review of available liquid funds, to settle liabilities and debts as they fall due. This risk is mitigated by way of regular liaison with the bank, active management of trade debtors and creditor balances, and the monitoring of reserve funds to ensure adequate working capital is available to the charity.
Attention has also been focused on operational and financial risks associated with the potential loss of an abattoir. Regular communications with abattoirs currently in use and establishing relationships with potential new abattoirs in conducting trial shechitos there reduces this risk.
Structure, governance and management
a. Constitution
On advice from the Board’s specialist charity solicitors, steps were taken in February 2017 to convert the legal status of the Board from an unincorporated charity to a charitable company limited by guarantee. A members’ consultation committee (with two delegates from each parent body) was consulted on draft articles and the charity incorporated formally at Companies House on 22nd February 2017 and registered with the Charity Commission on 2nd March 2017 following approval of the articles by the members.
On 1 July 2019 the assets and liabilities of the unincorporated charity, then known as London Board for Shechita (charity no. 233467), were transferred to The London Board for Shechita charitable company registered with Companies House (registered no. 10633799) and with the Charity Commission for England and Wales (registered charity no. 1171869).
The London Board for Shechita is a charitable company limited by guarantee, governed by its Memorandum and Articles of Association dated 22 February 2017 as amended 16 April 2019.
On 24th April 2020 the Federation of Synagogues formally ceased its involvement as a Parent Body of the Board; all 3 Parent Bodies have reached agreement as to the terms of that exit. As a result of that, the Board is now made up of 15 members who are nominated by the remaining two parent bodies – the Spanish & Portuguese Jews’ Congregation and the United Synagogue.
During the current accounting period, Isaac Levy remained President of the Board. Benjamin Mire and Russell Kett remained Vice-Presidents and Brian Markeson as Hon Treasurer.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
Structure, governance and management (continued)
b. Methods of appointment or election of Trustees
The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.
c. Public Benefit Statement
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
The sections of this report above, entitled, ‘Objectives and activities', 'Structure, governance and management', and ‘Achievements and performance’ sets out the objectives of The London Board for Shechita, and reports on the activities and successes in the accounting period to the 30th June 2023, as well as explaining the plans for the remainder of 2023 and into 2024.
The Board has a simple purpose, to be responsible for the administration of the affairs of shechita for the London Jewish community, and such other communities as may wish to associate themselves with the Board.
The Board itself does not deal in meat and poultry, but seeks to offer reliable shechita services at high standards of kashrut, and as financially and efficiently as possible, to the consumers of Kosher meat and poultry.
It seeks to reinvest any surpluses and other income, in keeping its fees as low as possible and improving its services.
The support of the Board's licensees, staff and parent bodies is vital in enabling the Board to deliver its objectives, as is their application that public benefit must override their individual interests.
The Trustees have considered this matter, and concluded:-
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a. The aims of the Board continue to be charitable;
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b. That the aims and the work carried out give identifiable benefits to the charitable sector, and both indirectly and directly to individuals in need;
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c. That the benefits are for the public, are not unreasonably restricted in any way, and certainly not by ability to pay;
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d. That there is no detriment or harm arising from the aims or activities
d. Members of the Board
The role of members is to promote the objective of the Board, and in so doing advise the trustees about the work of the Board and its policies, support the trustees in furthering the objective and assist the trutees with the monitoring and development of the Board, the members and the trustees.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
Plans and challenges for 2023/2024
The Strategic Review of 2018 noted the re-adoption by the trustees of a strategy which identified three broad objectives for the Board:
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a. To secure the supply of Kosher meat and poultry;
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b. At the lowest possible cost;
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c. At a high standard of Kashrus (dietry laws).
Following consideration by the Board and consultation with the trade, this strategy has guided the Board's work. However, each of the principles can sometimes work as opposing forces to one another. Indeed, the Strategy Committee identified the fact that the Board is the only organisation in the world that supplies shechita services alone, without linkage to the provision of other kashrut operations, and that any 'stand-alone' shechita operation cannot, of itself, produce surplus funds from its operations alone.
As part of the strategy, the trustees seek to involve all Board members in its work. This has involved the continued liaison with sub-committees, known as the Finance Committee, the Licensing Committee and the Consumer Affairs Committee.
The UK's departure from the European Union, alongside the war in Ukraine created further cause for concern on the basis that some of the Board's licensees both import from and export to EU countries. Increased costs of transport together with limitations on product available from Poland means that additional capacity for the shechita of UK beef is required.
In addition, the Board has commenced looking into the idea of a central koshering plant in the UK and is liaising with other shechita boards on the concept.
Trustees
The trustees are responsible to the members for their general control and management of the administration of the Board, and to develop and implement its policies.
The positions of President and Vice President rotate triennially as nominated by the parent bodies.
These three members, together with an Honorary Treasurer, elected by the Board at the outset of the triennial, are the trustees.
Each parent body shall each select (from among the members it has elected) for appointment by rotation, a President and two Vice Presidents, provided always that such selections are subject to the approval of the members by resolution. If a trustee or member is newly appointed and has not served previously, then the Chief Executive, with other experienced trustees, guides the new appointee through an induction process, in which a full explanation and training is given in the Board’s operations, activities and their new constitutional and statutory responsibilities.
The trustees meet at least monthly, to discuss the management accounts and ensure that the affairs of the Board are properly conducted.
The day-to-day running of the Board is through the Chief Executive, who is the secretary to the Board.
The following served as trustees, and also as directors for the purposes of company law, during the period and up to the date of signature of the financial statements:
Isaac Levy Benjamin Mire Russell Kett Brian Markeson
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
Disclosure of information to auditor
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
Auditor
Blick Rothenberg Audit LLP have indicated their willingness to continue in office. The Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
Isaac Levy
(Trustee)
Date: 27/03/2024
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 30 JUNE 2023
The Trustees (who are also the directors of the charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LONDON BOARD FOR SHECHITA
FOR THE YEAR ENDED 30 JUNE 2023
Opinion
We have audited the financial statements of The London Board For Shechita (the 'charity') for the year ended 30 June 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 30 June 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LONDON BOARD FOR SHECHITA (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
Other information
The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LONDON BOARD FOR SHECHITA (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
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we identified the laws and regulations applicable to the company through discussions with trustees and other management, and from our commercial knowledge and experience of the charity sector;
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment and health and safety legislation;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
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identified laws and regulations were communicated the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested a sample of journal entries to identify unusual transactions;
-
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
reading the minutes of meetings of those charged with governance;
-
enquiring of management as to actual and potential litigation and claims; and
-
reviewing correspondence with HMRC
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LONDON BOARD FOR SHECHITA (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Marc Levy FCA (senior statutory auditor)
for and on behalf of Blick Rothenberg Audit LLP
Chartered Accountants Statutory Auditor 16 Great Queen Street
Covent Garden
London
WC2B 5AH
Date: 27/03/2024
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2023
| Note Income from: Donations and legacies Charitable activities 4 Investments 5 Total income Expenditure on: Raising funds 6 Provision and administration of Shechita 8 Total expenditure Net expenditure before net losses on investments Net gains/(losses) on investments Net movement in funds before other recognised losses Other recognised gains/(losses): Losses on revaluation of fixed assets Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2023 £ 1,030 2,088,952 513,305 2,603,287 127,136 2,582,266 2,709,402 (106,115) 15,620 (90,495) - (90,495) 6,486,912 (90,495) 6,396,417 |
Total funds 2023 £ 1,030 2,088,952 513,305 2,603,287 127,136 2,582,266 2,709,402 (106,115) 15,620 (90,495) - (90,495) 6,486,912 (90,495) 6,396,417 |
Total funds 2022 £ - 2,008,860 335,179 2,344,039 93,898 2,541,847 2,635,745 (291,706) (31,316) (323,022) (80,000) (403,022) 6,889,934 (403,022) 6,486,912 |
|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 18 to 32 form part of these financial statements.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
REGISTERED NUMBER: 10633799
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
BALANCE SHEET FOR THE YEAR ENDED 30 JUNE 2023
| Note Fixed assets Investment property 14 Investments 15 Current assets Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Total net assets Charity funds Restricted funds 18 Unrestricted funds Designated funds 18 General funds 18 Total unrestricted funds 18 Total funds |
371,891 105,753 477,644 (181,082) 5,460,000 936,417 |
2023 £ 5,460,000 639,855 6,099,855 296,562 6,396,417 6,396,417 - 6,396,417 6,396,417 |
372,618 192,063 564,681 (171,681) 5,460,000 1,026,912 |
As restated 2022 £ 5,460,000 633,912 |
|---|---|---|---|---|
| 6,093,912 393,000 |
||||
| 6,486,912 | ||||
| 6,486,912 | ||||
| - 6,486,912 |
||||
| 6,486,912 |
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Isaac Levy (Trustee)
Date: 27/03/2024
The notes on pages 18 to 32 form part of these financial statements.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023
| Note Cash flows from operating activities Net cash used in operating activities 20 Cash flows from investing activities Dividends, interests and rents from investments Proceeds from sale of investments Purchase of investments Net cash provided by investing activities Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 21 The notes on pages 18 to 32 form part of these financial statements |
2023 £ (609,292) 513,305 115,139 (105,462) 522,982 - (86,310) 192,063 105,753 |
As restated 2022 £ (607,727) 335,179 67,938 (78,566) 324,551 - (283,176) 475,239 192,063 |
|---|---|---|
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
1. General information
The London Board for Shechita is a private company limited by guarantee incorporated in England and Wales. The address of its registered office is 305 Ballards Lane, London, United Kingdom, N12 8GB. The charity is registered with the Charity Commission for England and Wales (charity no. 1171869).
In the event of the charity being wound up, the member's liability in respect of the guarantee is limited to £1 per member of the charity.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The London Board For Shechita meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Prior year adjustment
The Trustees have restated the Charity’s balance sheet as at 30 June 2022, to reclassify the investment portfolio as fixed asset investments (from current asset investments as reported previously), in order to reflect the nature of the investment portfolio and that the intention was not to dispose of the entire portfolio within 12 months of the original investment having been made. This has no effect on the Charity’s statement of financial activities for the year ended 30 June 2023 or the net assets of the Charity at that date.
2.3 Going concern
After making enquiries, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
2.4 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income from charitable activities relate to Shechita and Shomer fees from licensees and are recognised on a receiveable basis.
Rental income from the investment properties held is recognised on an accruals basis in accordance with the rental agreement.
Investment income is recognised on an accruals basis as and when notified by the fund manager.
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(A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
THE LONDON BOARD FOR SHECHITA
2. Accounting policies (continued)
2.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.6 Investment property
Investment property, which is property held to earn rentals and/or capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reportng end date. The surplus or deficit on revaluation is recognised in the statement of financial activities. The gain or loss on the sale of investment properties, which represents proceeds less the carrying value, are recognised in the statement of financial activities.
2.7 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.8 Tangible fixed assets and depreciation
Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
Leasehold property - over life of lease - Fixtures and fittings 20% straight line
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
2. Accounting policies (continued)
2.9 Financial instruments
The charity has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the charity becomes party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.
The charity’s policies for its major classes of financial assets and financial liabilities are set out below.
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the charity would receive for the asset if it were to be sold at the reporting date.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
2. Accounting policies (continued)
Financial instruments (continued)
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
2.10 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
2.11 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.12 Pensions
The charity operates a defined contribution pension scheme and the pension charge represents the accounts payable by the charity to the fund in respect of the year.
2.13 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
2. Accounting policies (continued)
2.14 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund. Revaluations on investment property are allocated to the designated fund.
3. Critical accounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Critical accounting estimates and assumptions:
Valuation of investment properties
Investment properties are revalued annually by the trustees on an open market basis. In estimating the fair value, the trustees engage from time to time a thrid party qualified valuer to perform the valuation. The market rental values capitalised at a market capitalisation rate but there is an inevitable degree of judgement involved in that each property is unique and value can only ultimately be reliably tested in the market itself. The key inputs into the valuation are annual rent per square metre and rental yield ranging from 5.5% to 7.5%.
4. Income from charitable activities
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2023 | 2023 | 2022 | |
| £ | £ | £ | |
| Shechita and shromer fees | 2,088,952 | 2,088,952 | 2,008,860 |
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
5. Investment income
| Unrestricted funds 2023 £ Rental income 496,327 Income from local listed investments 16,056 Interest receivable 922 513,305 |
Total funds 2023 £ 496,327 16,056 922 513,305 |
Total funds 2022 £ 319,498 15,603 78 |
|---|---|---|
| 335,179 |
6. Raising funds
| Unrestricted funds 2023 £ Investment management costs 4,733 Expenses on investment properties 120,575 Bad debt expense 1,828 127,136 |
Total funds 2023 £ 4,733 120,575 1,828 127,136 |
Total funds 2022 £ 4,975 85,974 2,949 |
|---|---|---|
| 93,898 |
The bad debt expense relates to the write off and provision of tenant's arrears.
7. Analysis of expenditure on charitable activities
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2023 | 2023 | 2022 | |
| £ | £ | £ | |
| Summary by fund type | |||
| Shechita and shomer services | 2,570,266 | 2,570,266 | 2,541,847 |
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
8. Analysis of expenditure by activities
| Shechita and shomer fees Total 2022 |
Activities undertaken directly 2023 £ 2,527,836 2,500,847 |
Grant funding of activities 2023 £ 54,430 41,000 |
Total funds 2023 £ 2,582,266 2,541,847 |
Total funds 2022 £ 2,541,847 |
|---|---|---|---|---|
Analysis of direct costs
| Staff costs Materials Travelling Insurance Professional fees Rents and rates Other costs Governance costs |
Shechita and shromer fees 2023 £ 2,130,146 39,651 99,944 24,390 162,739 9,607 32,359 29,000 2,527,836 |
Total funds 2023 £ 2,130,146 39,651 99,944 24,390 162,739 9,607 32,359 29,000 2,527,836 |
Total funds 2022 £ 2,176,394 41,223 55,372 36,347 101,294 37,013 37,843 15,361 |
|---|---|---|---|
| 2,500,847 |
Governance costs includes audit fees of £20,000 (2022: £12,500) excluding VAT.
9. Analysis of grants
| Grants Total 2022 |
Grants to Institutions 2023 £ 54,430 41,000 |
Total funds 2023 £ 54,430 41,000 |
Total funds 2022 £ 41,000 |
|---|---|---|---|
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
9. Analysis of grants (continued)
The charity has made the following material grants to institutions during the year:
| Name of institution National Council of Shechita Boards of Great Britain Broom Foundation Other grants to institutions of less than £4,000 each |
2023 £ 36,000 10,080 8,350 54,430 |
2022 £ 36,000 5,000 - |
|---|---|---|
| 41,000 |
10. Auditor's remuneration
| Fees payable to the charity's auditor for the audit of the charity's annual accounts Fees payable to the charity's auditor in respect of: All non-audit services not included above |
2023 £ 20,000 813 20,813 |
2022 £ 12,500 363 |
|---|---|---|
| 12,863 |
11. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2023 £ 1,943,023 149,068 38,055 2,130,146 |
2022 £ 1,943,978 158,372 74,044 |
|---|---|---|
| 2,176,394 |
Included within wages and salaries are redundancy payments of £9,500 (2022: £33,308) to staff members.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
11. Staff costs (continued)
The average number of persons employed by the charity during the year was as follows:
| Management and administration Shechita and associated staff |
2023 No. 2 20 22 |
2022 No. 3 21 |
|---|---|---|
| 24 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| 2023 | 2022 | ||
|---|---|---|---|
| No. | No. | ||
| In the band £60,001 | - £70,000 | 4 | 5 |
| In the band £80,001 | - £90,000 | 1 | 2 |
| In the band £90,001 | - £100,000 | 2 | 1 |
Remuneration and benefits received by key management personnel during the year amounted to £252,252 (2022: £245,463).
12. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).
During the year ended 30 June 2023, no Trustee expenses have been incurred (2022 - £NIL).
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
13. Tangible fixed assets
| Cost At 1 July 2022 At 30 June 2023 Depreciation At 1 July 2022 At 30 June 2023 Net book value At 30 June 2023 At 30 June 2022 14. Investment property Valuation At 1 July 2022 At 30 June 2023 |
Short-term leasehold property £ 53,132 53,132 53,132 53,132 - - |
Fixtures and fittings £ 16,408 16,408 16,408 16,408 - - |
Total £ 69,540 |
|---|---|---|---|
| 69,540 | |||
| 69,540 | |||
| 69,540 | |||
| - | |||
| - | |||
| Freehold investment property £ 5,460,000 |
|||
| 5,460,000 |
The freehold investment properties were valued at £5,460,000 as at 4 November 2022 by an independent third party. The valuations were carried out by an RICS qualified surveyor on an open market, existing use basis. The trustees consider the market value as at 30 June 2023 to be £5,460,000.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
15. Fixed asset investments
| Valuation At 1 July 2022 (as restated) Additions Disposals Revaluations At 30 June 2023 Net book value At 30 June 2023 At 30 June 2022 (as restated) Debtors Due within one year Trade debtors Other debtors |
2023 £ 297,313 74,578 371,891 |
Listed investments £ 633,912 105,462 (115,555) 16,036 639,855 639,855 633,912 2022 £ 298,490 74,128 372,618 |
|---|---|---|
16. Debtors
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THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
17. Creditors: Amounts falling due within one year
| Trade creditors Other taxation and social security Other creditors Accruals and deferred income Deferred income |
2023 £ 49,273 37,539 11,716 82,554 181,082 2023 £ 56,521 |
2022 £ 56,134 43,053 1,940 70,554 |
|---|---|---|
| 171,681 | ||
| 2022 £ 56,521 |
Deferred income relates to rent received in advance.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
18. Statement of funds
Statement of funds - current year
| Balance at 1 July 2022 £ Income £ Expenditure £ Gains/ (Losses) £ Balance at 30 June 2023 £ Unrestricted funds Designated funds Designated funds 5,460,000 - - - 5,460,000 General funds General funds 1,026,912 2,603,287 (2,709,402) 15,620 936,417 Total Unrestricted funds 6,486,912 2,603,287 (2,709,402) 15,620 6,396,417 The designated fund is equal to the value of the investment properties held by the charity. These amounts have been shown as designated funds as it is the charity's current intention not to use any proceeds from any sale of investment propertie to fund the day-to-day activities of the charity. Statement of funds - prior year Balance at 1 July 2021 £ Income £ Expenditure £ Gains/ (Losses) £ Balance at 30 June 2022 £ Unrestricted funds Designated funds Designated Funds 5,540,000 - - (80,000) 5,460,000 General funds General Funds 1,349,934 2,344,039 (2,635,745) (31,316) 1,026,912 Total Unrestricted funds 6,889,934 2,344,039 (2,635,745) (111,316) 6,486,912 |
Balance at 30 June 2023 £ 5,460,000 |
|---|---|
| 936,417 | |
| 6,396,417 | |
| Unrestricted funds Designated funds Designated Funds General funds General Funds Total Unrestricted funds |
|
| 1,026,912 | |
| 6,486,912 |
The designated fund is equal to the value of the investment properties held by the charity. These amounts have been shown as designated funds as it is the charity's current intention not to use any proceeds from any sale of investment propertie to fund the day-to-day activities of the charity.
The designated fund is equal to the value of the investment properties held by the charity. These amounts have been shown as designated funds as it is the charity's current intention not to use any proceeds from any sale of investment properties to fund the day-to-day activities of the charity.
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
19. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2023 £ Fixed asset investments 639,855 Investment property 5,460,000 Current assets 477,644 Creditors due within one year (181,082) Total 6,396,417 Analysis of net assets between funds - prior year Unrestricted funds 2022 £ Fixed asset investments 633,912 Investment property 5,460,000 Current assets 564,681 Creditors due within one year (171,681) Total 6,486,912 |
Total funds 2023 £ 639,855 5,460,000 477,644 (181,082) 6,396,417 Total funds 2022 £ 633,912 5,460,000 564,681 (171,681) 6,486,912 |
|---|---|
20. Reconciliation of net movement in funds to net cash flow from operating activities
| Net expenditure for the year (as per Statement of Financial Activities) Adjustments for: Gains/(losses) on investments Dividends, interests and rents from investments Decrease/(increase) in debtors Increase in creditors Increase in deferred income Net cash used in operating activities |
2023 £ (90,495) (15,620) (513,305) 727 9,401 - (609,292) |
2022 £ (323,022) 31,316 (335,179) (13,935) 16,895 16,198 (607,727) |
|---|---|---|
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DocuSign Envelope ID: 97B3CE56-DB08-40D8-BACC-009B494FE334
THE LONDON BOARD FOR SHECHITA
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
21. Analysis of cash and cash equivalents
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Cash in hand | 105,753 | 192,063 |
22. Analysis of changes in net debt
| Cash at bank and in hand | At 1 July 2022 £ 192,063 192,063 |
Cash flows £ (86,310) (86,310) |
At 30 June 2023 £ 105,753 |
|---|---|---|---|
| 105,753 |
23. Pension commitments
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in independent administered funds. The pension cost charge represents contributions payable by the charity to the funds and amounted to £38,055 (2022: £74,044). Contributions totaling £6,341 (2022: £nil) were payable to the funds at the balance sheet date.
24. Operating lease commitments
At 30 June 2023 the charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
2023 £ 23,000 92,000 5,750 120,750 |
2022 £ 23,000 92,000 28,750 |
|---|---|---|
| 143,750 |
25. Related party transactions
During the year, the charity paid a grant of £36,000 (2022: £36,000) to the National Council of Shechita Boards of Great Britain, a charitable organisation with one common trustee.
The charity received donations of £280 (2022: £Nil) from the trustees' during the year.
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